Sunday, October 16, 2011

State Representative Robin Vos (R-David Koch's servant quarters) is trying to put a damper on the recall of Scott Walker by asking how much the recall would cost tax payers. I have heard him on squawk radio saying that he wouldn't be surprised if the price tag is as high as $10 million.

His point is, of course, trying to anger the fringe base of the teahadists that think taxes is the end all of any question.

But he is asking the wrong question.

The more appropriate question would be what would it cost not to recall Walker.

Using economic modeling software, it is possible to simulate how proposed reductions in public sector worker household income would directly harm Wisconsin’s economy. This includes detailed financial models of every county in the state which estimates the ripple effect of cuts in consumer disposable income in local communities.

This analysis shows that the proposed cuts in public worker compensation would lead to the loss of $660 million a year in economic production in the private sector. It would eliminate $46 million in property taxes or shift them to other taxpayers. It would noticeably increase the state unemployment rate.

Taking one billion dollars in purchasing power out of the hands of public sector households over the biennium would have a ripple effect in the economy equivalent to laying off sizable numbers of private sector employees in every county. For example, in Brown County the job loss would be the same as losing the entire payroll of Fleet and Farm of Green Bay. In Dane County, it would be like losing the payroll of Dean Health Systems; in Marathon County, like losing Kraft Foods. This “compensation cut” plan is a failed strategy that hurts economic recovery in Wisconsin.

As you can see, recalling Walker would be a bargain even if the cost of doing so was twice or even thrice Vos' estimate.

But all is not a lost cost. If Vos is truly, and I mean truly, concerned about the hit the tax payers would be, he should be encouraging Walker to step down and save both the cost of the recall and the damage that is being done to the state's economy. It would also be a perfect opportunity for Vos to lead by example by resigning himself.

But then again, that would require honesty and integrity, things that both Walker and Vos have a deep deficit in.

2 comments:

Terrific use of "deficit," and you're 100% correct. Every day Gov. Walker is Governor, he can auction off more of the public trust to the Koch brothers and the top 1%. Every day Gov. Walker is Governor, he can do more massive damage to "capital," clean air, clean water, and the rest of Wisconsin's natural resources. Every day Gov. Walker is Governor, makes the clean-up, that much more difficult.